Personal loans are your best allies to solve those sudden expenses that could arise in your home, pay a debt, buy appliances, etc. These credits are granted by financial entities to people who request it and deliver a series of collections that prove their ability to borrow and pay.
How personal credits work
In personal loans, the financial institution has a guarantee in case of default, this guarantee is the assets and assets of the person to whom the personal loan was granted. These loans are of high interest and small repayment term, compared to other types of loans.
Aspects to consider before requesting a personal credit
- Amount of the monthly fee
- Miscellaneous processing expenses
- Interest rate, fixed or variable
- Repayment term
- Opening and cancellation commission
Personal loans of fixed or variable interest
Fixed interest loans are always maintained regardless of the fluctuations in the market, while a variable interest credit will change depending on the fluctuation in the market. The interest rate must be selected according to the applicant’s ability to pay.
Basic requirements to request a personal credit
For the financial institution that grants the personal credit, it is essential to have the assurance that the person can face the debt, will pay on time each of the installments and that he has an estate that in case of default serves as a guarantee, This is why a series of documents are requested from the personal loan applicant. Some of the basic requirements, which are requested by financial institutions to people interested in receiving a personal credit are:
- National Identification Document
- Proforma invoice
- Budget of what is intended to be acquired with personal credit money
- Proof of income
- Income Statement
- Payroll Receipt
- Heritage List
- Lease or housing receipt contract
- Legible copy of the employment contract
Request a personal credit in a safe, responsible and transparent way
Acquiring a debt with a financial institution and guaranteeing the assets that are owned must be a decision made with calm, wisdom and security. It is necessary to ensure that each of the monthly installments can be paid on time, without this implying a deterioration in the quality of life used. To avoid being a victim of scams, it is best to go to the offices of a recognized, approved financial institution with great experience in the market.
Difference between a credit card and a personal credit
Many people are unaware of the difference between personal loans and credit cards. A credit or personal loan has a fixed interest rate and a certain time for full payment, while credit cards have an interest rate that can vary and do not have a fixed payment term.